Expenses associated with an insurer's underwriting activity include all of the following, EXCEPT:

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Expenses associated with an insurer's underwriting activity include all of the following, EXCEPT:

A. Investment expenses
B. Payment for losses
C. Loss adjustment expenses
D. Premium taxes, licenses, and fees

Answer: A. Investment expenses are separate from the expenses associated with underwriting activities.

Insurance

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay? a) $0 b) $30,000 c) $32,000 d) $40,000 Answer: B

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